Shares of Dixon Technologies surged nearly 10 per cent on Wednesday despite the company posting a 36 per cent fall in net profit to ₹256 crore in the quarter ended March 31, 2026, from ₹401 crore in the year-ago period. Notwithstanding the fall in net profit for the first time in 17 quarters, most analysts said the performance was better than expected and not as they feared.
For the quarter, its revenue increased to ₹10,510.51 crore (₹10,292.54 crore) and it recommended a final dividend of ₹10 a share for FY26. During the day, the stock surged to a high of ₹11,229.90 on the BSE, but closed a shade lower at ₹11,124.95, a gain of 9.73 per cent.
According to Kotak Institutional Equities, Dixon Q4 came in 22 per cent ahead of modest expectation, driven by strong performance in the consumer electronics segment and higher ASP in the mobile segment due to a memory price increase. The domestic brokerage retained its Buy rating with a target price of ₹15,200.
Dixon, according to Equirus Securities, generated robust operating cash flow (OCF) of ₹1,780 crore in FY26, with pre-tax OCF/EBITDA conversion at 118 per cent. Despite FY26 capex of about ₹1,060 crore, the company delivered FCF of ₹720 crore and ended FY26 with cash and cash equivalents of ₹1,240 crore. The brokerage, however, revised its rating to Add from Long with a target price of ₹11,000 (against earlier ₹10,510).
However, most foreign brokerage remained cautious on the stock and retained their Hold rating. CLSA, which cut the target price to ₹10,400 (₹12,100) and has Neutral rating, said Dixon’s near‑term earnings are vulnerable to a sustained escalation in global memory prices, while visibility on medium-term growth remains weak as market share in smartphones peaks.
Jefferies also lowered its target price to ₹10,280 (₹10,330) with a Hold rating. Despite 35 per cent fall in share price in the last six months, Dixon trades at 51x FY27e PE, above many EMS peers, it said.
HSBC said Q4 results were largely in line with consensus estimates, with mobile phone volumes slightly below expectations.
“With management discussing a multitude of new growth levers, including data centre servers, timely execution is key,” it said while keeping Hold rating with a target price of ₹12,000.
However, Macquarie remained bullish on the company by retaining Outperformer rating and a target price of ₹15,000.